Judge Allows Pharmanet Derivative Suit To Continue

Law360, New York (July 25, 2007, 12:00 AM EDT) -- A New Jersey federal judge has refused to throw out a derivative lawsuit filed against directors of drug testing firm Pharmanet Development Group Inc. on grounds of demand futility, ruling that the directors would not have been biased in considering the shareholders' demands.

Judge Stanley R. Chesler denied a motion by PDG's directors to dismiss the case on Tuesday, ruling that shareholders of PDG, which was known as SFBC International Inc. until August 2006, were excused from a pleading requirement in which they had to state...